ECB: Focusing on implementing previously announced measures - BNZ

Kymberly Martin, Senior Market Strategist at BNZ, notes that overnight the ECB left its interest rate and quantitative easing program unchanged.

Key Quotes

“President Draghi emphasised the Bank is focusing on implementing previously announced measures, including the corporate bond buying program that kicks off on 8 June. The ECB provided further detail on the pending program. It will not be necessary for the ECB to sell corporate bonds it buys, even if they are subsequently downgraded to ‘junk’ status.

The ECB’s published forecasts for CPI were revised slightly higher for 2016 (reflecting higher oil prices) but left unchanged for 2017/2018. After the announcements German yields traded lower. From 0.15%, German 10-year yields now sit at 0.11%.”